Wix Announces Completion of $200 Million Share Repurchase Program

Rhea-AI Summary

Wix (NASDAQ: WIX) has announced the completion of its $200 million share repurchase program that was authorized by its Board of Directors in July 2024. The company has repurchased 868,026 ordinary shares, which represents approximately 1.5% of total outstanding shares. The repurchase was executed at a volume-weighted average price of $230.41 per share.

Positive

• Completed $200 million share buyback program, reducing share count by 1.5%
• Strong average repurchase price of $230.41 demonstrates company's confidence in stock value
• Share reduction potentially increases earnings per share for remaining shareholders

Negative

• Significant cash outlay of $200 million reduces company's available liquidity

Insights

Financial Analyst

Wix's completion of its $200 million share repurchase program marks a significant milestone in its capital allocation strategy. At an average price of $230.41 per share, the company has strategically reduced its outstanding shares by 1.5%, demonstrating strong confidence in its business model and financial position.

The buyback's execution price point and timing reveal important insights about management's view of the company's valuation. By deploying capital at these levels, Wix's leadership effectively signals their belief that the shares were undervalued relative to their long-term potential. For existing shareholders, this move is particularly beneficial as it increases their proportional ownership of the company without requiring any action on their part.

The reduction in share count has several positive implications:

• Enhanced earnings per share (EPS) metrics due to fewer outstanding shares
• Improved return on equity (ROE) ratios
• Potential positive impact on stock price due to increased demand relative to supply

From a market perspective, completing the buyback program, which was announced just six months ago, indicates strong execution capabilities and efficient capital deployment. This swift implementation suggests robust free cash flow generation and a healthy balance sheet position, essential factors for sustainable growth in the competitive web development and hosting space.

NEW YORK – – Wix.com Ltd. (NASDAQ: WIX), today announced that it has completed $200 million in share repurchases, which were part of the authorization by its Board of Directors approved in July 2024.

The Company repurchased 868,026 outstanding Wix ordinary shares, representing approximately 1.5% of total shares outstanding, at an approximate volume-weighted average price per share of $230.41.

About Wix.com Ltd.

Wix is the leading SaaS website builder platform¹ to create, manage and grow a digital presence. Founded in 2006, Wix is a comprehensive platform providing users - self-creators, agencies, enterprises, and more - with industry-leading performance, security, AI capabilities and a reliable infrastructure. Offering a wide range of commerce and business solutions, advanced SEO and marketing tools, the platform enables users to take full ownership of their brand, their data and their relationships with their customers. With a focus on continuous innovation and delivery of new features and products, users can seamlessly build a powerful and high-end digital presence for themselves or their clients. 

For more about Wix, please visit our Press Room
Investor Relations Contact: IR@wix.com
Media Relations Contact:  PR@wix.com  

¹ Based on number of active live sites as reported by competitors' figures, independent third-party data and internal data as of H1 2024.

FAQ

How many shares did Wix repurchase in its 2024 buyback program?

Wix repurchased 868,026 ordinary shares, representing approximately 1.5% of total outstanding shares.

What was the average price per share in Wix's 2024 buyback program?

The volume-weighted average price per share in Wix's buyback program was $230.41.

When did Wix's Board approve the $200 million share repurchase program?

Wix's Board of Directors approved the $200 million share repurchase program in July 2024.

What percentage of outstanding shares did Wix's 2024 buyback program represent?

The share repurchase program represented approximately 1.5% of Wix's total outstanding shares.